Denmark's central bank has decided to cut its key interest rate by 0.15 percentage points to 0.05 percent in anticipation of the European Central Bank's decision on Thursday which could increase upward pressure on the value of the Scandinavian country's krone.

Danmarks Nationalbank says the rate reduction will take effect Tuesday and follows the bank's purchase of foreign exchange in the market.

Denmark is member of the European Union, but is not one of the 18 countries that use the euro. The central bank typically follows ECB changes as part of a policy of trying to keep the krone pegged to the euro to help stabilize the national currency.